PRODUCTION REPORT FOR APRIL 2019

3 May 2019

Volga Gas plc

("Volga Gas", the "Company" or the "Group")

DRILLING UPDATE AND

PRODUCTION REPORT FOR APRIL 2019

Volga Gas plc, the oil and gas exploration and production group operating in the Volga Region of Russia, is pleased to provide the following update on its average production volumes for April 2019.

Drilling Update

Drilling of Uzen 4 horizontal sidetrack into the shallower Albian reservoir commenced on 16^th March and completed on 1^st May. The total metres drilled in the sidetrack was 1,132 meters including a 407 meters horizontal section at vertical depth of 795 meters. Flow testing of the well is expected to commence after the activation of underground packers to cut off water flow from beneath the reservoir, which is expected to occur during May 2019.

Production Report

The average production in April 2019 was 4,905 barrels of oil equivalent per day (22.8% lower than March 2019). The decline in production was due to the gas plant being shut down for routine maintenance for 5 days during April.  In addition, as a result of lower nominations from Gazprom, for the last four days of April 2019, gas processing capacity utilisation was reduced to 16.2 mmcfd and is expected to remain at the same level during May 2019.

During April 2019, as in March 2019, oil production was restricted by seasonal muddy road conditions to Uzen field.  

Average production comprised:

Management's expectation for 2019 for production to average 5,900 boe per day including LPG volumes remains unchanged.

Production data is based on preliminary monthly production reports prepared for the purposes of submissions to tax authorities for Mineral Extraction Tax purposes.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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Notes

The information contained in this announcement has been reviewed and verified by Mr. Andrey Zozulya, Chief Executive Officer of Volga Gas plc, for the purposes of the Guidance Note for Mining, Oil and Gas companies issued by the London Stock Exchange in June 2009. Mr. Andrey Zozulya holds a degree in Geophysics and Engineering from the Groznensky Oil & Gas Institute and is a member of the Society of Petroleum Engineers.

The Company records production in metric tonnes (for oil and condensate) and in cubic metres (for gas).  Conversions from metric to standard oil field units are used for illustrative purposes only and are based on the Company's estimate of the applicable ratios.  The ratios used are 7.833 barrels per tonne for oil and 8.75 barrels per tonne for condensate and 11.735 barrels per tonne for LPG. Gas volumes are translated using 35.3 cubic feet per cubic meter and 6,000 cubic feet per barrel of oil equivalent.

Glossary

bpd              Barrels per day

boepd          Barrels of oil equivalent per day

mmcfd         Millions of standard cubic feet per day